I bought a property (apartment) in February 2008 at Bangalore. The property is on the verge of completion now and builder is ready to provide possession and get it registered on my name.
I wish to sell the apartment now, it is still not registered under my name so apparently this process will be a transfer of ownership to the buyer.
In such a case will I be eligible for a long term capital gain tax (which can be avoided by buying a different property) or it will be considered a short term capital gain tax.
I would be grateful if you could show me the torch.
11 December 2013
. Without taking possession of the property you can not sale the property. . Still if you sell something than for selling the same -you must possess it. . In this case, you have got a right in 2008 to which you are selling in 2013. This right to purchase or acquire the property to which you are transferring in favour of another person , is covered under the definition of a capital asset. . LTCG will arise in such a case. Residential property can be purchased by investing the Sales Consideration. Refer Section 54F. .
11 December 2013
Dear Pravar, . One asset can not result into two types of capital gains. May the forum be discussing the issue on different type of facts. . In your case only and only LTCG is to be computed. . Indexed Cost of Acquisition (ICA) towhich you have to deduct from the sales consideration, for arriving LTCG can be computed on yearly (installments paid)basis. . You can refer the table of Cost Inflation Index, which you can easily get on net. .
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